The Daily bulletin. [volume] (Honolulu [Hawaii]) 1882-1895, 1887-04-06
the HAWAIIAN LOAN.
MR.. E. c. MAcFARLANE's LETTER.

EDITOR BULLETIN N.-lu YOUR lSSuc
Of the 18th inst. was an editorial arti-
Gle accounting for the failure Of the
So, 900, 900 loan recently authorized
by the Hawaiian Government. 1t is
not strange that the writer of the
article should have assumed the
failure for which he sought good
reasons, for the statement has re-
Gently been made by so many San
Francisco journals and in so many
forms, that any one not apprised of
the influences at work 10 produce
that impression could hardly fail to
be misled. And here let me say
that do not wish to imply, for l do
not believe, that the Bulletin is ac-
cessible to these influences, except
through error. Yet error in capable
and honest journal may do greater
injustice and be more mischievous,
than wilful falsehood in journal of
the other sort. My relation to the
matter of the Hawaiian loan is slight,
but of such character as to give
me a pretty accurate knowledge of
the facts, and personal interest in
having them truthfully set forth. /
am the brother of the man (Col. G.
w. Macfarlane) appointed by the
Hawaiian Government to negotiate
it.
The Hawaiian loan has not failed.
1t would be difficult to mention any
recent financial operation that has
met with a more immediate and
conspicuous success. On the day of
Col. Macfarlane's departure from
the Islands to place this loan in
London he offered 100000 of the
bonds in Honolulu, and nearly
$500, 900 were almost instantly SUBJ
scribed, but the amount offered was
all that was allotted. Shortly after
ward the house of Mathieson & Co.
of London offered in that market
two-thirds of the remaining bonds
(f2OO,O0O) and applications were
made for something like twenty-one
times the amount-the allotment in
this instance, as in the other, being
made pro rata. If this is failure, it
is not easy to conjecture what sue
cess would be.
l saw it stated in one of the many
local papers which have been devel-
oping so unusual an interest in this
matter lately, that the public did not
subscribe for any of these bonds,
and that "the syndicate" had been
obliged to take the whole amount
themselves. The syndicate took
none-the entire offering was taken
by the public at SO percent, and the
bonds at once advanced to pre-
MUM, and have sold in the London
market as high as 1881. The last
quotation that saw in the London
Financial Neaos was LOG to 107. II
this is "failure," the vocabulary oi
the English language should be re-
written.
There remains to be offered on /:
rising market only $500, ,0O0-one
fourth. AS about One-half thu
whole loan is to be applied, under
the Act, to nothing more urgen
than the construction of public
works, the necessity of haste il
offering the remaining one-quartel
is not apparent.
Nearly month ago the sum o.
f100, 900, product Of this loan
was received by the Bank of Cali
fornia with which to pay some bonds
of former issue owned, though i
would appear not all controlled, by
one of San Francisco's leading bust
ness men, Claus Spreckels. Mr.
Spreckels has received from tn
! Government at Honolulu draft 70
the portion of these bonds ($3OO,
, 000) which he was able to present
and the balance, l presume, await
his convenience. His open accoun
against the Islands, amounting
more then 100000 and bearing
/ percent interest, was long ago pal
|, with money obtained by the ne'
loan at 6 percent. The success 9
this loan can, therefore, be atteste
! by at least one man having accurat
knowledge Of the fact, and himsel
well known. In the editorial articl
already mentioned you say, an
: justly say; ''The bonds, if the
} are issued. should be placed in thi
: country" That was the feeling,
think, of every man in Honolul
having official connection with tn
matter. know that it was the fee
ing of the King, his Ministers an
7 Col. Macfarlane. Indeed, this is
point which the American sentimen
, prevailing the social, commerce..
and political fabric Of Hawaii make
it superAuous to affirm. Why the
was the loan not placed here!
, The answer to this involves col
sideiation which ! am reluctant I
touch upon, and which ] will tret
as delicately as possible.
The "inhuences" mentioned i
the beginning of this letter, whic
haye been powerful enough to den
to the most patent facts, right G
, public recognition-powerful enoug
even (if you will pardon my sayin
SOY to mislead your own grea
: journal [This is not so-EDITo
BULLETIN, were not unforeseen
Indeed, it had been openly declare
that the loan should not succeed